By Will Feuer
Charles River Laboratories, a contract pharmaceutical research company, has reported a rise in sales in the third quarter, even as customer spending declined.
The company’s third-quarter earnings stood at $87.4 million, or $1.69 per share, compared to $96.5 million, or $1.88 per share, during the same period last year.
Adjusted earnings, excluding one-time items, were recorded at $2.72 per share, surpassing analysts’ expectations of $2.36 per share.
Revenue experienced an almost 4% increase to reach $1.03 billion, exceeding analysts’ projections of $1.0 billion.
While Chief Executive James Foster acknowledged a decline in customer spending, he noted that there are indications of more favorable demand trends emerging.
To align with weaker demand, Charles River is implementing cost-cutting measures. The company’s profit was impacted by costs related to site-consolidation and other non-operating expenses.
The research models and services unit witnessed a revenue growth of approximately 4%, while the discovery and safety assessment unit reported a 7% increase in revenue. However, the manufacturing solutions segment experienced a decline of 7% in revenue.